Intuitive Surgical Inc

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ISRG : NASDAQ : Health Care
$663.74 -0.97 | -0.15%
Today's Range: 655.0 - 667.34
Avg. Daily Volume: 393800.0
01/17/17 - 4:00 PM ET

Financial Analysis


INTUITIVE SURGICAL INC's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. INTUITIVE SURGICAL INC is extremely liquid. Currently, the Quick Ratio is 5.06 which clearly shows the ability to cover any short-term cash needs. ISRG managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 34.66% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

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Income Statement Q3 FY16 Q3 FY15
Net Sales ($mil)682.9589.7
EBITDA ($mil)0.0213.5
EBIT ($mil)256.4189.9
Net Income ($mil)211.0167.3


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)2215.31739.7
Total Assets ($mil)6174.74682.3
Total Debt ($mil)0.00.0
Equity ($mil)5541.84115.2


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin71.3171.12
EBITDA Margin0.036.2
Operating Margin37.5532.2
Sales Turnover0.420.49
Return on Assets11.6911.65
Return on Equity13.0213.25
Debt Q3 FY16 Q3 FY15
Current Ratio5.515.01
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)38.737.3
Div / share0.00.0
EPS5.314.4
Book value / share143.2110.33
Institutional Own % n/a n/a
Avg Daily Volume373108.0244267.0

Valuation


BUY. This stock's P/E ratio indicates a significant discount compared to an average of 60.40 for the Health Care Equipment & Supplies industry and a premium compared to the S&P 500 average of 26.11. To use another comparison, its price-to-book ratio of 4.42 indicates a significant premium versus the S&P 500 average of 2.89 and a significant discount versus the industry average of 7.47. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, INTUITIVE SURGICAL INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ISRG 34.12 Peers 60.40   ISRG 24.26 Peers 22.88

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

ISRG is trading at a significant discount to its peers.

 

Average. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

ISRG is trading at a valuation on par to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
ISRG 25.85 Peers 23.17   ISRG 0.79 Peers 0.87

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

ISRG is trading at a premium to its peers.

 

Average. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

ISRG trades at a valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ISRG 4.42 Peers 7.47   ISRG 28.19 Peers 93.00

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

ISRG is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, ISRG is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ISRG 9.33 Peers 5.90   ISRG 13.46 Peers 17.50

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

ISRG is trading at a significant premium to its industry.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

ISRG trails its peers on the basis of sales growth

 

 

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